Chicago, Illinois — GP Transco will begin paying its drivers a $69 daily per diem starting in January, a significant shift in compensation structure designed to increase net income through tax efficiency rather than gross pay increases. The Illinois-based carrier, known for its technology-focused approach to fleet management, is rolling out this program as a direct response to driver requests and the challenging economic conditions of the freight industry.
The decision reflects a broader trend among trucking companies hiring in an effort to retain talent. Sergey Bort, Vice President of Marketing and Strategic Business Development, noted that the cost of living has risen sharply, making non-taxable income a critical component of driver compensation. During the difficult freight market of 2023, GP Transco recognized that drivers were leaving for competitors who offered per diem packages. By adopting this model, the carrier aims to reduce turnover and provide a tangible financial advantage without altering the base mileage rate.
Under the new structure, drivers earn between $78,000 and $88,000 annually, a figure that remains stable while the tax burden on that income decreases. The $69 per diem applies to every night a driver spends away from home. For an OTR truck driver working six days a week for 45 weeks a year, this translates to more than $18,000 in income that is not subject to federal income tax. Bort emphasized that while the gross pay scale does not change, the take-home pay increases substantially due to these tax savings.
What This Means for Drivers
For the CDL-A driver, this change provides a direct boost to disposable income without requiring additional miles on the odometer. The per diem is additive to existing benefits, which include paid vacation, medical, dental, vision, and life insurance, as well as a 401(k) with a 4% company match. Drivers also continue to receive compensation for all miles, whether loaded or empty, along with specific pay for layovers, breakdowns, extra stops, border crossings, and successful inspections. This comprehensive package ensures that an owner-operator or company driver working for GP Transco receives compensation for every aspect of the job.
Industry Reaction
The initiative was not top-down; it originated from GP Transco’s driver advisory board, a group of ten members who unanimously voted in favor of the program. Joe Miller, Vice President of Finance, confirmed that the board members identified this as a major benefit for the workforce. A subsequent fleet-wide survey reinforced this sentiment, with over 80% of drivers indicating that per diem pay would significantly enhance their overall compensation. The level of excitement among the workforce has exceeded the company’s initial projections, suggesting that non-taxable income is becoming a primary factor in driver job satisfaction.
Key Points
- GP Transco will pay $69 per day in non-taxable per diem for nights away from home.
- Base annual pay remains between $78,000 and $88,000, with benefits including a 4% 401(k) match.
- The program was approved unanimously by the driver advisory board and supported by 80% of the fleet.
- Estimated tax savings for a full-time driver exceed $18,000 annually.
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